This Small Business Innovation Research Phase I project aims to develop novel algorithms and hardware accelerators for a real-time, high-resolution, H.264-based network video appliance. It is also designed for transmission over packet-based networks while achieving significantly superior compression efficiency compared to previous standards and proprietary solutions. It will improve encoder performance by at least one order of magnitude compared to current implementations. A real-time, network appliance with the compression efficiency of H.264 will have broad applications, particularly in the areas of distance learning, remote training, security and surveillance.<br/><br/>The innovations resulting from this research will enable implementers to significantly improve the real-time performance of H.264. A real-time, high-resolution network appliance with the compression efficiency of H.264 will bring digital video in the mainstream by delivering high quality video to the endpoints of the network. This will drive business and consumer uses by making communication crucial to making distance learning and remote training economically feasible. This superior visual communication capability will foster greater scientific collaboration between geographically dispersed researchers and engineers.